Markets to focus on Q2 results, macro data, IPO listings this week
Mumbai: Investors are expected to watch out corporate earnings, macro data and oil price movement this week. The markets are also likely to react to the outcome of the Goods and Services Tax (GST) Council meet on Friday. Prices of a large variety of consumer goods may decrease with GST Council moving around 178 items to 18% from the highest tax bracket of 28%.
“The slowing of downside momentum in the market is still not leading to comeback of bulls from the lows. Any attempt of upside bounce is unlikely to hold for next week and Nifty could witness selling pressure on every rise. The downside levels to be watched is around 10,180-150 levels, which could be achieved by next week,” said Nagaraj Shetti, technical analyst at HDFC Securities.
In the last leg of the earnings session, few key corporate results that will be announced this week are Sun Pharmaceuticals Industries Ltd, Eicher Motors, GAIL, Idea Cellular, NMDC, SpiceJet, United Bank of India and Adani Ports.
Both Larsen & Toubro Ltd (L&T) and Coal India Ltd, which reported their September quarter earnings on Saturday and Sunday, respectively, will be in focus on Monday. The infrastructure major reported a 26.9% jump in Q2 net profit at Rs1,820 crore, while revenue grew by 5.7% to Rs26,446.8 crore in the same period. L&T said it won’t be able to meet its order inflow guidance of a growth of 12-14% in the financial year 2017-18.
Coal India reported lower profits for the six straight quarter. It saw around 40% fall in its consolidated net profit to Rs368.88 crore in the September quarter and net sales from operations was at Rs17,748 crore compared to Rs16,788 crore a year ago.
Axis Bank Ltd will also be in focus after its board approved raising up to Rs11,625.8 crore ($1.78 billion) through a private placement of shares from a clutch of investors. Bain Capital will buy 4% stake by investing Rs5,179 crore in Axis Bank.
In the primary markets, New India Assurance Co. Ltd will make its market debut on Monday. The Rs9,600 crore IPO was subscribed 1.19 times during the 1-3 November share sale with a price band of Rs770-800 per equity share.
Khadim India and HDFC Standard Life Insurance will also list their shares on stock exchanges this week.
Inflation data based on Consumer Price Index (CPI) and Wholesale Price Index (WPI) for October will be released this week.